How States Pay for Wars

Winner, 2017 Robert Jervis and Paul Schroeder Best Book Award (International History and Politics Section, American Political Science Association)

Armies fight battles, states fight wars. To focus solely on armies is to neglect the broader story of victory and defeat. Military power stems from an economic base, and without wealth, soldiers cannot be paid, weapons cannot be procured, and food cannot be bought. War finance is among the most consequential decisions any state makes: how a state finances a war affects not only its success on the battlefield but also its economic stability and its leadership tenure. In How States Pay for Wars, Rosella Cappella Zielinski clarifies several critical dynamics lying at the nexus of financial and military policy.

Cappella Zielinski has built a custom database on war funding over the past two centuries, and she combines those data with qualitative analyses of Truman's financing of the Korean War, Johnson’s financing of the Vietnam War, British financing of World War II and the Crimean War, and Russian and Japanese financing of the Russo-Japanese War. She argues that leaders who attempt to maximize their power at home, and state power abroad, are in a constant balancing act as they try to win wars while remaining in office. As a result of political risks, they prefer war finance policies that meet the needs of the war effort within the constraints of the capacity of the state.

Introduction: Making Money, Making War
1. How States Pay for Wars
2. Truman and the Korean War
3. Johnson and the Vietnam War
4. Britain and Currency Reserves during World War II and the Crimean War
5. Taxation and Currency Reserves during the Russo-Japanese War
6. Confronting the Costs of War, 1823–2003
Conclusion: Long War Finance in Perspective

How States Pay for Wars

"A promising first book... that addresses a significant gap in the market and should find its way onto reading lists for advanced undergraduate and graduate students." —Mark Harrison, Governance (April 2017)

How States Pay for Wars

"With admirably thorough research, Rosella Cappella Zielinski teaches us much about a critical yet remarkably underresearched topic—how governments pay for war. This masterful book deserves to be on the shelf of anyone interested in the nexus of international relations and international political economy."—Benjamin J. Cohen, Louis G. Lancaster Professor of International Political Economy, University of California, Santa Barbara, author of The Geography of Money

How States Pay for Wars

"In the important How States Pay for Wars, Rosella Cappella Zielinski explores the sources of war financing decisions by states. She seeks to explain why states choose to finance wars through different strategies, including taxation, domestic debt, printing money, or external finance. This understudied topic merits careful attention. Cappella Zielinski's excellent book is a must-read for scholars, graduate students, and policymakers interested in the political economy of security and international relations more broadly."—Norrin M. Ripsman, Lehigh University, author of Peacemaking from Above, Peace from Below: Ending Conflict between Regional Rivals

How States Pay for Wars

"How States Pay for Wars contributes importantly to the current renaissance of research on the political economy of national security. Rosella Cappella Zielinski presents a compelling explanation of how governments decide whether to pay for the wars they fight. Drawing heavily on detailed historical research on cases that span 150 years, she convincingly demonstrates that the choice to tax or borrow hinges on public support, concern about inflation, and state capacity. The argument has

obvious relevance to contemporary U.S. defense spending decisions. This thin volume is sure to have a wide impact."—Thomas Oatley, University of North Carolina at Chapel Hill, author of A Political Economy of American Hegemony: Buildups, Booms, and Busts